Barr v. NCB Management Services, Inc.
711 S.E.2d 577
W. Va.2011Background
- Barr purchased a 2007 motorcycle for $9,000 and financed it through HSBC Bank Nevada; the loan was to be paid by Barr’s son who would pay Barr, who would pay HSBC.
- Barr later became delinquent; HSBC repossessed the motorcycle in 2009 and sought a deficiency balance.
- HSBC hired NCB Management, a professional debt collector, to collect the deficiency in 2010.
- Barr alleged WVCCPA violations by NCB, including misrepresentation, third-party contact, improper credit report access, and pressure to use her husband’s card.
- Barr filed suit in federal court; the district court certified whether the WVCCPA provides a private action against a professional debt collector; WV Supreme Court answered affirmatively.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether WVCCPA §46A-5-101(1) permits a private action against a professional debt collector | Barr argues the term 'creditor' is ambiguous and includes debt collectors | NCB argues only creditors are liable under §46A-5-101(1) | Yes, professional debt collectors fall within 'creditor' for §46A-5-101(1) |
Key Cases Cited
- Thomas v. Firestone Tire & Rubber Co., 164 W.Va. 763, 266 S.E.2d 905 (1980) (Article 2 applies to all who engage in debt collection)
- State ex rel. McGraw v. Scott Runyan Pontiac-Buick, Inc., 194 W.Va. 770, 461 S.E.2d 516 (1995) (Remedial, liberal construction to protect consumers)
- Harper v. Jackson Hewitt, Inc., 227 W.Va. 142, 706 S.E.2d 63 (2010) (CCPA remedial; broad application to protect consumers)
- Wolfe v. Forbes, 159 W.Va. 34, 217 S.E.2d 899 (1975) (Nositur a sociis—contextual meaning of terms in statutes)
- Conseco Fin. Servicing Corp. v. Myers, 211 W.Va. 631, 567 S.E.2d 641 (2002) (Statutory interpretation guiding remedial purposes)